- US equities gained on Monday after notching their fourth-straight weekly loss.
- Tech giants boosted major indexes. Uber soared after a judge in the UK ruled its operations in London can continue.
- Economic data in China also lifted investors’ hopes for a near-term rebound. The country’s National Bureau of Statistics reported industrial profits grew for a fourth consecutive month in August by 19.1%.
- Oil prices retraced early losses and climbed alongside a falling US dollar. West Texas Intermediate crude gained as much as 1.3%, to $40.77 per barrel.
- Watch major indexes update live here.
US stocks swung higher on Monday as strong economic data outweighed concerns around rising COVID-19 cases.
Investors also cheered encouraging economic data out of China. The country’s industrial giants posted a fourth-straight month of profit growth in August, according to China’s National Bureau of Statistics. Earnings at large industrial companies leaped 19.1%, slowing only slightly from July’s 19.6% reading. The report suggests similar rebounds are in store for countries still early into their recoveries.
Here’s where US indexes stood soon after the 9:30 a.m. market open on Monday:
Monday’s uptick signals the last days of the month could yield better results than past weeks. Friday’s gains failed to pull the market into a positive weekly return, marking stocks’ fourth straight weekly loss.
September will likely mark the first month of negative returns after stocks’ sharp rally through the summer. Yet price swings typically seen in October might make up for said losses, Chris Larkin, managing director of trading and investment product at E-Trade, said.
“Many expect the volatility and market drops to bleed into October, and while it’s historically the stock market’s most volatile month, it’s also been one of the most bullish with plenty of upside to go with the down,” he said, adding October boasts the highest median return of any month.
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Inovio Pharmaceuticals tumbled after trading was temporarily halted ahead of the opening bell. The biotech firm announced Monday that its coronavirus vaccine’s phase 2/3 trial was under a temporary hold due to questions from the Food and Drug Administration. Inovio plans to answer the questions in October and resume the study soon after.
HSBC soared after its largest shareholder bolstered its position in the bank. The firm’s shares gained in London trading as well.
Spot gold climbed as much as 0.6% to $1,872.54 per ounce, still struggling to retake the key support of $1,900. Treasury yields gained as investors shifted to riskier assets.
Oil erased early losses and rose as the US dollar dropped. West Texas Intermediate crude gained as much as 1.3%, to $40.77 per barrel. Brent crude, oil’s international standard, climbed 1.2%, to $42.43 per barrel, at intraday highs.
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